British supermarket giant Asda has partnered with technology group Ocado to modernize its online grocery business, marking a major step in the retailer’s effort to recover lost market share in
the highly competitive UK grocery sector.
The agreement, announced Friday, will see Asda overhaul its existing e-commerce infrastructure using Ocado’s retail technology platform across stores and dedicated fulfilment sites beginning in 2027.
Asda, which is majority owned by private equity firm TDR Capital, operates around 1,100 stores nationwide and processes more than 700,000 online grocery orders each week. However, Britain’s third-largest supermarket chain has faced mounting pressure from rivals including Tesco, Sainsbury’s, Aldi and Lidl.
Under the new partnership, Ocado will provide a range of digital and logistics solutions, including Asda’s online storefront, in-store fulfilment systems, and software designed to improve delivery route planning and last-mile efficiency.
The companies said the upgraded platform will allow Asda to expand its online services, offering customers both scheduled and rapid-delivery options alongside click-and-collect services. The system will also support deliveries made through third-party platforms such as Uber Eats, Deliveroo and Just Eat.
“Partnering with Ocado will strengthen our online offer,” said Asda executive chairman Allan Leighton.
The deal represents a significant win for Ocado, which has been seeking to reinforce confidence in its technology business after setbacks in North America last year. U.S. grocery partner Kroger and Canadian retailer Sobeys both scaled back automated fulfilment projects after weaker-than-expected online demand.
Ocado already works with Morrisons in the UK and jointly owns Ocado Retail with Marks & Spencer.
Investors welcomed the announcement, sending Ocado shares up 12% in early trading. Despite the rally, the stock remains down more than 10% over the past year.
Ocado said the Asda agreement is not expected to materially impact its financial performance in the current fiscal year. The company maintained its forecast of becoming cash-flow positive in the second half of 2025/26 and for the full 2026/27 financial year. Photo by User:Waggers, Wikimedia commons.
